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Overstock.com (OSTK) Q4 Earnings Beat Mark, Revenues Down Y/Y

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Overstock.com reported fourth-quarter 2021 adjusted earnings of 36 cents per share, which beat the Zacks Consensus Estimate by 12.50% but were down 25% from the year-ago quarter.

Revenues of $612.7 million decreased 8.5% year over year. The top line also lagged the consensus mark by 5.6%.

Top-Line Details

Active customers reached 8.1 million at the end of fourth-quarter 2021, down 12% year over year.

Orders placed through a mobile device were 50.7% of gross merchandise sales in the fourth quarter.
 

Overstock.com, Inc. Price, Consensus and EPS Surprise

Overstock.com, Inc. Price, Consensus and EPS Surprise

Overstock.com, Inc. price-consensus-eps-surprise-chart | Overstock.com, Inc. Quote

 

Average order value was $206 in the quarter, reflecting an increase of 23% year over year. However, total orders delivered in the quarter were three million, representing a decrease of 25%.

Operating Details

Gross margin expanded 20 basis points (bps) to 22.7% in the reported quarter.

Sales & marketing (S&M) expenses decreased 8% year over year to $68 million. As a percentage of revenues, S&M expenses expanded 10 bps to 11.1%.

Technology expenses were $30.9 million, up 3.2% year over year. As a percentage of revenues, technology expenses jumped 60 bps on a year-over-year basis.

General & administrative (G&A) expenses decreased 14.4% year over year to $20.8 million. As a percentage of revenues, G&A decreased 20 bps to 3.4%.

Adjusted EBITDA was $27.3 million, which declined 8.6% from the year-ago quarter.

Operating income was $19.1 million compared with $22.4 million a year ago.

Balance Sheet

As of Dec 31, 2021, Overstock.com had cash and cash equivalents worth $503.3 million.

Long-term debt, as of Dec 31, 2021, was $38 million.

Zacks Rank & Stocks to Consider

Overstock.com currently carries a Zacks Rank #4 (Sell).

Builders FirstSource (BLDR - Free Report) , Dollar Tree (DLTR - Free Report) and DICK'S Sporting Goods (DKS - Free Report) are some better-ranked stocks in the broader Retail-wholesale sector.

While Builders FirstSource sports a Zacks Rank #1 (Strong Buy), Dollar Tree and DICK’s Sporting Goods carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Builders FirstSource is set to report its fourth-quarter 2021 results on Mar 1, 2022.

The BLDR stock has declined 22.3% year to date.

Dollar Tree is set to report its fourth-quarter 2021 results on Mar 2, 2022.

The DLTR stock has declined 3.1% year to date.

DICK’s Sporting Goodsis likely to report fourth-quarter 2021 results on Mar 8.

The DKS stock has declined 15.1% year to date.


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Dollar Tree, Inc. (DLTR) - free report >>

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Builders FirstSource, Inc. (BLDR) - free report >>

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